The UBank term deposit doesn't charge any unnecessary fees. If you decide to reinvest your term deposit, you will receive a 0.10% bonus rate on top of the standard interest rate.
UBank is currently offering one of the most competitive rates around, though the longest term it's offering is up to 12 months.
What are the features of the UBank Term Deposit Account?
While just about all Australian financial institutions offer their customers fixed rate term deposit accounts for their savings, you will notice differences in the features. Look at those that UBank is providing against what you get from other banks before making a choice in a term deposit account:
$0 Account keeping fees
You are not charged any monthly account keeping fees on your UBank Term Deposit account.
Small minimum investment of $1,000
You must be able to deposit at least $1,000 to start your term deposit.
Competitive interest rates offered
The interest rates applied to your balance are competitive and fixed over the length of the term. The rate amount increases with longer terms, but you will get the best return on your investment by choosing the six month term.
You're rewarded for your loyalty
If you roll over the entirety of your term deposit balance or more into a new term when it matures, you will receive a loyalty interest bonus of 0.10% per annum (p.a.) on top of the standard rate.
How is my interest calculated and paid?
Interest is calculated on your balance on a daily basis. For terms of less than one year, the interest will be paid to you at maturity. If you choose a one year term, you can opt for monthly payments or one payment at maturity.
Can be linked to any Australian everyday account
Called your “chosen bank account” by UBank, your linked account must be held by an Australian financial institution and be in the exact same name as the UBank Term Deposit. This account will be used to transfer funds and accept interest payments if you choose the monthly payment option.
Joint term deposit available
You are permitted to have a joint account holder for your term deposit.
Terms from 1 to 12 months
You can choose a one, three, four, six, or nine month term, or invest your savings for a full year. There are no long term investments available.
Backed by the Government Guarantee
UBank not only is a part of the Government Financial Claims Scheme, which guarantees deposits of up to $250,000, they are backed by NAB. This does mean that the funds counted towards the Financial Claims Scheme include the total you have in NAB accounts as well as with UBank.
Rules around withdrawing term deposit early
If you need to make an early withdrawal of your funds, you must let UBank know no less than 31 days prior. Interest will be adjusted by an amount that is deemed reasonable by UBank to cover its cost in maintaining your account. The amount requested to be withdrawn must be in increments of $500, and if a partial withdrawal results in a balance of less than $1,000 the account will be closed and all money transferred into your linked bank account.
You are permitted to provide UBank with maturity instructions at any point during your terms, but if they are not received within two days of the maturity date, the funds will be rolled into a new account with the same terms and prevailing interest rate at that time. You then have seven days to make any necessary changes to your new term deposit.
Available for personal use and SMSFs
This account is meant for personal purpose only or for a trustee of a SMSF.
- Low minimum investment of $1,000
- $0 Account keeping fees
- Wide ranges of terms from 1 month to 1 year
- Receive a loyalty bonus for reinvesting
- 31 days advance notice required in case of withdrawing funds before maturity
How do I apply for the UBank Term Deposit Account?
If you appreciate the benefits of the UBank Term Deposit Account, you can visit UBank website and begin filling in your online application.
Eligibility to apply online
Before beginning, ensure that you are able to meet their eligibility requirements:
- Minimum age. Applicants must be at least 18 years old.
- Residency requirements. You must be an Australian resident for tax purposes living at an Australian residential address.
- Depository requirements. A minimum of $1,000 is required to open a UBank Term Deposit Account.
Documentation to apply online
UBank also recommends having the following documentation readily available to assist in filling out the application:
- Tax file number. Providing your tax file number (TFN) will help in ensuring that your interest earnings are taxed at the correct rate.
- Identification. Your driver’s licence number if available will help to prove your identity. You can also use your passport or Medicare card.
- Chosen bank account. The details of a separate Australian banking account in the same name for you to be able to transfer your deposit as well as receive any interest payments.
What happens after I submit the application?
Once you have submitted your application online, UBank will contact you via email with the details of your new term deposit so that you may initiate your first deposit.
What are the current UBank term deposit interest rates?
- 1 Month Term Deposit Earns 1.90% p.a.
- 3 Month Term Deposit Earns 2.60% p.a.
- 4 Month Term Deposit Earns 2.55% p.a.
- 6 Month Term Deposit Earns 2.64% p.a.
- 9 Month Term Deposit Earns 2.66% p.a.
- 12 Month Term Deposit Earns 2.64% p.a.
Customers who roll their term deposit over at the end of the term will be rewarded with a loyalty bonus of 0.10% p.a.